The influence of monetary and non-monetary reward towards employee retention at Aerospace Composites Malaysia Berhad

The objective of this study was to investigate whether there were any influences between organization compensation in Aerospace Composites Malaysia (ACM) on employee retention. Compensation and benefits are consisting of monetary and nonmonetary reward. Thus, the independent variables while the dependent variable was employee retention. This study also investigates the level of employee retention at ACM. A total of 275 employees participated in this study by answering survey questionnaire. Data was collected through 29 items questionnaires on a five-point Likert and another 6 items were demographic questions. Data were analyzed using descriptive statistics (mean and standard deviation) and inferential statistics (correlation and multiple regressions). The finding from this study showed that monetary and non-monetary reward have a significant influence with employee retention. The study also revealed that the mean for employee retention was at high level 3.715 in one to five scale. Meanwhile, 73.9 percent of independence variance were influencing the ACM employee retentions. This study would like to highlight to human resource and policymakers that total reward should be seen as according to employee performance not their entitlement.